The Impact of Artificial Intelligence

Abstract:

Technologies for Artificial Intelligence (AI) are developing rapidly, with many potential benefits for
economies, societies, communities and individuals. AI innovations offer the potential to boost
productivity across industries, and to develop new products and services. The realization of their
potential demands that these benefits be accomplished as widely as possible, as quickly as possible
and as smoothly as possible.

AI's potential to drive change in many jobs sectors has rekindled concerns about automation and the
future of work. While much of the public and policy debates on AI and work tended to oscillate
between "end of work" fears and reassurances that little will change overall employment, evidence
suggests that none of these extremes are likely. However, there is consensus that AI will have a
disruptive effect on work, with some jobs being lost, others being created, and others changing.

There are many different perspectives on ' automatability, ' with a broad consensus that current AI
systems are best suited for ' routine ' tasks, and tasks that may include complex processes, whereas
people are more likely to remain dominant in unpredictable environments or in contexts that require
significant social intelligence.

The extent to which technological advances are–overall–a substitute for human workers depends on a
balance of forces, including productivity growth, task creation, and capital accumulation. The number
of jobs created as a result of growing demand, movement of workers to different roles, and
emergence of new jobs linked to the new technological landscape all also influence the overall
economy as a whole.

While technology like Big Data and Data Analytics is often the catalyst for revisiting concerns about
automation and work, and may play a leading role in framing public and policy debates, it is not a
unique or overwhelming force. Other factors also contribute to change, including political, economic,
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and cultural elements.

Studies of the history of technological change demonstrate that, in the longer term, technologies
contribute to increases in population-level productivity, employment, and economic wealth. But these
studies also show that such benefits at population level take time to emerge, and there may be
interim periods when there are significant disadvantages experienced by parts of the population.

Keywords:

Artificial Intelligence, Big Data, Data Analytics, Deep Learning, Robotisation, Dematerialization, Gig
Economy, Autonomous Driving, Internet of Things.

Introduction:

Artificial Intelligence is impacting virtually the future of almost every industry and every human
being. Artificial Intelligence has acted as the main driver of the emerging technologies like big
data, robotics and IoT, and it will continue to act as a technological innovator for the foreseeable
future.

Artificial Intelligence (AI) technologies are developing apace, with many potential benefits for
economies, societies, communities, and individuals. Realizing their potential requires achieving these
benefits as widely as possible, as swiftly as possible, and with as smooth a transition as possible. AI
technologies offer the promise to boost productivity across sectors, and to create new products and
services. These technologies are already being used in sectors such as retail, manufacturing, and
entertainment, and there is considerable potential for further use, for example in pharmaceuticals,
education, and transportation.

There’s virtually no major industry modern AI — more specifically, “narrow AI,” which performs
objective functions using data-trained models and often falls into the categories of deep learning or
machine learning — hasn’t already affected. That’s especially true in the past few years, as data
collection and analysis has ramped up considerably thanks to robust IoT connectivity, the proliferation
of connected devices and ever-speedier computer processing.

However with the advent of AI, there is also uncertainty surrounding the future world of work,
evidence from previous waves of technological change –including the Industrial Revolution and the
advent of computers –that provide evidence and perspectives for informing today's policy debates.
Meanwhile studies from across research domains–from economics to robotics to anthropology–can
inform thinking about the role of different forces, factors, and institutions in shaping the role of
technology in society.

Objective:
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To study how AI would impact the world of business and the policy debates surrounding the
automation and future of work.

Scope:

The study analyses the current impact of AI and aims to decipher its possible future implications on the
workforce.

Methodology:

The study is descriptive in nature and is based on secondary data. The data are collected from various
reports, technological journals, news articles, consulting insights etc.

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Artificial Intelligence and its working:

Artificial Intelligence (AI) is the simulation by machines, particularly computer systems, of processes of
human intelligence. Specific AI applications include expert systems, the processing of natural language
(NLP), and speech recognition and machine vision.

AI programming focuses on three cognitive skills: learning, reasoning and self-correction.

Learning processes:
 This aspect of AI programming focuses on acquiring data and creating rules for how to turn the data
into actionable information. The rules, which are called algorithms, provide computing devices with
step-by-step instructions for how to complete a specific task.

Reasoning processes:
This aspect of AI programming focuses on choosing the right algorithm to reach a desired outcome.

Self-correction processes:
 This aspect of AI programming is designed to continually fine-tune algorithms and ensure they provide
the most accurate results possible.

Explainability and Artificial Intelligence:

Explainability is a potential stumbling block to using AI in industries that operate under strict regulatory
compliance requirements. For example, financial institutions in the United States operate under
regulations that require them to explain their credit-issuing decisions. When a decision to refuse credit
is made by AI programming, however, it can be difficult to explain how the decision was arrived at
because the AI tools used to make such decisions operate by teasing out subtle correlations between
thousands of variables. When the decision-making process cannot be explained, the program may be
referred to as black box AI.

There are two kinds of Artificial Intelligence:

• Weak Artificial Intelligence: The computer is merely an instrument for investigating cognitive
processes – the computer simulates intelligence.

• Strong Artificial Intelligence: The processes in the computer are intellectual, self-learning processes.
Computers can ‘understand’ by means of the right software/programming and are able to optimize
their own behavior on the basis of their former behavior and their experience. This includes automatic
networking with other machines, which leads to a dramatic scaling effect.

Disruption of the service model:

AI will lead to a redefinition and a disruption of service models and products. While the technical
development leads primarily to an efficiency enhancement in the production sectors, new creative and
disruptive service models will revolutionize the service sector. These are adapted with the support of
big data analyses at the individual requirements of the client and not at the needs of a company.

Necessary skillset for employees:

The criteria for future employees must shift, due to the large number of evolving multidisciplinary
support alternatives related to AI and machines. Employees who do easy and/or routine jobs will hardly
need to. The number of factory employees is already slowly declining today, and humans are becoming
the machine's control mechanism ever more.

The automotive industry, where many production steps are already fully automated, is the pioneer in
this respect. The lower the demand for workers, the higher will be the companies’ demand for highly
qualified employees. According to common belief, better education helps, however, only in certain
circumstances. The additional qualification of an individual employee must be connected to the work in
question. Additional qualifications as an accountant will be of little benefit for the individual employee,
because – over time – there is a 98 per cent probability that the work of an accountant can be done by
intelligent software.

For the new labor market, creative people who are skilled in mathematics and science are best
qualified. Although not every potential employee is expected to be an IT programmer, a basic
understanding of analytical and technical issues should be given. Employees should be able to form a
team with supporting machines and algorithms and be able to navigate the internet easily and travel
safely in a social environment. To do so, the person needs to learn how the basic structures work.

Nevertheless, the employee should also be able to critically analyze the equipment and applications.
Employees who can also operate in sensitive and diverse areas are increasingly in demand. It's not just
overseeing machines, but coordinating them as well. The interfaces between humans and machines and
the overlaps in the area of responsibility among the more flexible humans must also be coordinated.
There is thus likewise an increasing demand for future executive staff with social and interdisciplinary
competence.

In addition, creativity and flexibility are becoming increasingly important. In the future, critical and
problem-orientated thinking will be expected of employees as the most important requirement. This
requires sound judgment. The expectations with respect to availability will be higher for future
employees. Flexible working hours and standby duties will be the rule and no longer an exception in the
labor market. Employees will be required to focus not only on one main practice area, but also to take
on several multifaceted, sometimes highly complex tasks as necessary, and also to perform as part of a
team. Employees are increasingly expected to have non-formal qualifications. These include, for
example, the ability to act independently, to build networks, to organize themselves and their teams
with a focus on targets, and to think abstractly.

As a key driver of many decisions, predictive analytics and objective data replace the gut feel and
experience. In that direction, stock trading, online advertising and supply chain management and
market pricing have all shifted sharply.

Special knowledge or a flair for high-quality craftsmanship will become less important, since this work
is likely to be done by intelligent software or a machine.
The Way Forward:

In this new AI-inspired world, where the sources of advantage have been transformed, strategic issues
morph into organizational, technological, and knowledge issues, and vice versa.

Although elements of AI are available in the market, the hard work of managing the interplay of data,
processes, and technologies happens in-house.

Structural flexibility and agility—for both man and machine—become imperative to address the rate of
degree of change.

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